Is Natraj Proteins overvalued or undervalued?

As of 16 October 2025, the valuation grade for Natraj Proteins has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, with a PE ratio of -16.45, an EV to EBITDA of 25.34, and a Price to Book Value of 0.47. These metrics suggest that the company is not only struggling with profitability but also has a high valuation relative to its earnings potential.
In comparison to its peers, Natraj Proteins stands out unfavorably; for instance, Gokul Agro has a PE ratio of 19.47 and an EV to EBITDA of 9.68, while Guj. Ambuja Exp boasts a PE of 20.65 and an EV to EBITDA of 11.15. The stark contrast in these ratios highlights Natraj's overvaluation in the edible oil sector. Additionally, the company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it reported a return of -13.57% compared to the Sensex's 2.41%, further reinforcing the notion of overvaluation.